August, 10 2006
Steel & coal sector growth drops in June 2006 YOY
A sharp slowdown in electricity generation as well as steel and cement production pulled down the overall infrastructure growth to 6.2% in June 2006 when compared with 8.3% in June 2005.
Coal production rose strongly by 11.9% in June 2006 as against 3.4% in June 2005. Growth in steel production was lower at 5.6% in June 2006 as against 12.6% in June 2005.
The six core infrastructure sectors logged a growth rate of 6.3% between April to June 2006 as compared to 7.5% in April to June 2005. Cumulative growth in the six core sectors would have been lower but for the rebound in crude production and petroleum refining. The two sectors rose 1.2% and 10.4% in June 2006 respectively from 0.3% and a negative growth of 1.1% in June 2005.
TATA Ryerson unveils CAPEX plans to double revenue in 2 years
TATA Ryerson Ltd will invest Rs 1 billion to set up four steel processing plants at Pune, Pantnagar, Taloja and Chennai with a combined capacity of 500,000 tonnes per annum in two years tine to double its revenue to Rs 15 billion in two years from Rs 7.54 billion during 2005-06
TATA Ryerson would invest Rs.400 million to set up a stainless steel processing plant of 0.1 million tonnes capacity at Pune, Rs.200 million for two 0.2 million tonnes capacity rebar processing facilities at Taloja in Maharashtra and Chennai and Rs.450 million for a steel service centre of 0.2 million tonnes at Pantnagar in Uttaranchal to cater to TATA Motor's plant at Pantnagar.
Mr Sandipan Chakravortty MD of TATA Ryerson said "It is a stiff competition in India at the moment, but with foreign steel companies also entering the Indian market, we are gearing up to meet rising demands through new investments"
TATA Ryerson Ltd, a steel service centre JV between TATA Steel Ltd and US based Ryerson Inc runs two units with a combined capacity of 1.5 million tonnes of flat steel products. Ryerson Inc is one of the leading distributors and processor of metals in the US.
Bolivia postpones El Mutun deal with JSPL- Report
Bloomberg has reported that Bolivian government has postponed a $2.3 billion contract with Jindal Steel & Power Ltd to develop the Mutun iron ore mine.
The report cited Mr Carlos Villegas planning minister of Bolivia as saying that Bolivia shelved the contract, awarded June 2, to negotiate a greater share of profits from the project, which includes a steel plant and a sponge iron factory. The government won't take a decision until we can guarantee more earnings for the state.''
JSPL had won the rights to mine half of El Mutun's probable iron ore reserves stated to be around 20 billion tons in June 2006. The contract established the company would pay royalties to Bolivia for export of ore, finished steel and pellets.
Monnet forms steel fabrication JV with Scandiuzzi at Haldia
Monnet Ispat and Energy Ltd has entered into a technical collaboration 65:35 JV agreement with Scandiuzzi SRL of Italy to set up a 0.12 million tonne steel engineering and fabrication facility at Haldia with an investment of Rs 400 crore. The investment would be made in two phases and the Rs 100 crore 1st phases is expected to be complete by December next year.
Mr Japonica MD of Monnet Ispat and Energy Ltd told PTI said "The unit would have an initial capacity of 40,000 tonnes per annum and depending on the response from both domestic and export markets, we would further invest Rs 300 crore to take up the total capacity to 120,000 tonnes."
Mr Japonica said that the fabrication unit would promote steel applications in India by producing critical infrastructure material such as railway bridges and transmission towers. The JV expects 50% of its fabrication business revenues from export markets. Mr Judsonia said "Scandiuzzi has a huge presence in Europe, West Asia and North Africa where the demand for such products is high. We expect to gain from our Italian partners market share and hope to supply finished material from the Haldia unit."
Rain effects Essar Steel production
Unprecedented rain over the past few days coupled with release of huge volume of water from the Ukai dam have flooded the industrial township of Hazira in Western India and has effected operations at Rs 100,000 crores ($21 billion) industrial hub severely.
Hazira based Essar Steel and Essar Power has also scaled down their production activities. Company spokesperson told FE that there has not been any damage to Essars complex at Hazira and the plant and townships are safe. However, its steel plant is operating at a mere 30% capacity while its 500MW power plant is producing only 100MW daily due to shutdown of the transmission grid.
Hazira, an industrial haven situated on the banks of the river Tapi in the state of Gujarat houses the biggest names in hydrocarbons, petrochemicals, engineering, Steel and power. It has NTPC's 655MW Kawas power plant, the KRIBHCO plant and the GAIL plant, RIL petrochemical, Essar Steel, L&T facility and ONGC facility.
10 feared buried alive as coal mine caves in Burdwan
Local media has reported that 10 workers engaged in illegal coal mining at Rasunpur in Burdwan district of West Bengal have been buried alive. The subsidence took place over two surface areas of 400 square feet each. The cave in was accompanied by a huge noise and release of fumes owing to the oxidation of methane inside the pits.
Local administration is reported to have started the dozing operation in Rasunpur.
The affected zone was leased out to the Goenka Groups Integrated Coal Mines Limited to extract coal for its captive use in 2001. Since the ICML had extracted coal from the pit, it was lying abandoned and villagers started to sneak in.
Such pits are frequented by the illegal coal miners in this part of Burdwan. The Rasunpur coal bearing patch had witnessed its biggest subsidence in 2001 when about 2000 square meters of land had caved in allegedly killing about 100 laborers
Karnataka CM for value based royalty on iron ore
Karnataka CM Mr HD Kumaraswamy during a meeting with Mr Sisram Ola union minister for mines has urged the central government to change the norms for payment of royalty to state governments on iron ore and other minerals in the next revision of royalty rates due in January 2007 so that it was based on the value of the commodities rather than on weight.
Mr HD Kumaraswamy said that this change was essential so that states such as Karnataka, which produced a large quantity of iron ore, got their proper dues.
CIL to undertake infrastructure development plans
It is reported that the coal ministry has taken measures to overcome infrastructure constraints by increasing capacity of coal washeries, improve coal transport system and transfer of excess coal to improve the supply of coal to power, steel and cement sectors.
Coal India Limited will develop new coal washeries at Dhori and Parej in Jharkhand, which will be commissioned by 2009 and 2010 respectively. Acoal washery at Kathara in Jharkhand will be taken up for renovation of primary crusher and railway tracks by June next year.
CIL has also proposed to undertake extension of loading bunkers at Sawant washery in Jharkhand and renovation of railway tracks by March 2008.
CIL also plans to install a column floatation circuit to improve recovery of fine coal with an investment of Rs 12.38 crore by January 2009.
CSL launches 3 vessels in a day
Government owned Cochin Shipyard Ltd launched 3 ships bulk carrier for Clipper Bahamas, the 9th fire fighting tug for ATCO of Saudi Arabia and the second platform supply ship for Deep Sea Supplies of Norway in a single day.
CSLs present order book in shipbuilding consists of balance four 30,000 DWT bulk carriers for Clipper, eight platform supply vessels for Deep Sea Supply, 4 platform supply vessels for NFC of Norway and the air defense ship for the Indian Navy.
Punj Lloyd appoints Mr Kaushik as MD
Punj Lloyd Ltd has informed BSE that Mr V K Kaushik joint MD and COO has been elevated to the position MD of the Company. Mr Atul Punj shall continue to be Executive Chairman of the Company.
HCC bags barrage construction & desilting package from NTPC
Hindustan Construction Company Ltd has been awarded a contract for "Construction of Barrage and Desilting Chamber" Package for Loharinag Pala Hydro Electric Power Project (4x150MW) in the State of Uttaranchal from NTPC Ltd.
The value of the contract is Rs 2464.80 million. The project is to be completed in 40 calendar months.
Chinese steel export slows down in July over June
Based on monthly import & export express data, subject to final revision by China customs at the end of Aug 2006, China's steel product export has slowed down to 3.58 million tons in July 2006 down 19.1% MOM over June 2006 although up by 133.8% YOY over July 2005.
Chinas steel import in July amounted to 1.53 million tons down by 8.3% MOM and down by 28.1% YOY.
The net export of steel products during July 2006 amounted to 2.05 million tons down by 25.7% MOM from 2.76 million tons posted for June 2006.
China's cumulative export of steel during January to July 2006 is 20.67 million tons up by 57.7%YOY and import of steel product adds up to 10.94 million tons and down by 28.7% YOY resulting in net export of 9.73 million tonnes in seven months.
Falconbridge advises shareholders to accept Xstrata offer
Falconbridge Ltd's board has recommended to its shareholders to tender their stock to Xstrata Plc under its C$62.50 ($55.58) a share takeover offer. Falconbridge said in a statement The board is satisfied that it is unlikely that an offer more attractive than Xstrata's will emerge.''
The board's recommendation comes less than two weeks after Falconbridge shareholders rejected a friendly takeover by Toronto based Inco Ltd., clearing the way for Xstrata's unsolicited offer for Falconbridge.
Xstrata's offer expires at 8PM Toronto time on August 14th.
Xstrata already owns about 24.5% of Falconbridge, the company said in the statement.
POSCO to build a steel mill in southern Vietnam
According to the Vietnam Steel Producers Association, POSCO plans to invest $1 billion to build a steel mill in one of the industrial parks in the southern Ba Ria Vung Tau Province in southern Vietnam.
The project will be developed in two phases. The 1st phase will give 0.7 million tonne steel making capacity at an investment of $340 by 2009. The 2nd phase will double the capacity to 1.5 million tons of steel a year and build a new factory capable of 3 million tons per year. The new factory is expected to be operational in late 2012 and a more detailed investment plan for the second-phase is to be revealed at a later date.
CSN may enhance expansion plan due to Baosteel JV
It is reported that Sao Paulo based Brazils 3rd largest steelmaker Cia Siderurgica Nacional may raise steel output targets in its $5 billion expansion plan by as much as a third through a proposed JV for a mill with Baosteel Group Corp. CSN and Baosteel plan to finish by December studies for a 4.5 million tonne steel slab mill at Itaguai in Brazil. CSN's board has already approved the construction of a 3 million tonne plant at the site.
Mr Eneas Garcia Diniz ED production of CSN said that CSN may also raise planned output to 4.5 million tons from 3 million tons at a second slab mill planned for Itaguai or Minas Gerais states and if approved, CSN's planned capacity expansion will rise to 9 million tons from 6 million under a $5 billion iron ore and steel plan.
Mr Diniz said It's been established that Baosteel can take part with an up to 25% stake in the project. The decision by Baosteel will be taken after the study is complete but CSN also has the option of doing the project on its own.''
Mr Diniz said that CSN expects to complete negotiations with the state governments of Rio de Janeiro and Minas Gerais by the end of September, allowing the company to choose and announce where its second slab mill will be built.
Shougang Peru sub contract workers go on strike
It is reported that 600 subcontracted workers at Peru's Chinese owned Shougang Hierro Peru iron ore mine brought forward an indefinite strike over pay planned for Tuesday after three colleagues were fired. Mr Guillermo Calla a leader of the subcontracted miners said "We are going to block the road to stop buses getting into the mine."
Mr Raul Vera GM of Shougang Peru had earlier said that because they performed mostly maintenance jobs, the subcontracted workers could only hurt output if they blocked roads into the mine.
Sympathetic regular workers said they would not cross their subcontracted colleagues' picket line. Mr Eduardo Zavala union secretary told Reuters "We will go as far as we can on the bus, but if they do not let us pass, we will not continue. Union leaders had already rejected the company's claim that sub contractors would not affect output, arguing they were vital to the production process.
Shougang, which is owned by Chinese state run steel maker Shougang Group, suffered a seven day pay strike at the end of June which shut down production at its pit in southern Peru. That strike ended after Peru's government ordered a pay increase of 3.30 soles ($1.00) a day, but hundreds of subcontracted workers with temporary contracts did not receive the salary increase.
Shougang Hierro Peru supplies major quantity of iron ore to Shougang and to South Korea, Japan, Trinidad and Tobago, Mexico, and the United States as well as domestically in Peru.
SUEKs coal production up by 14% YOY in H1
The Siberian Coal Company SUEK has produced 45.6 million tonnes of coal during January to June 2006 up by 14% YOY. Sales of coal also grew by 12% to 43.3 million tonnes.
SUEK sold 32.2 million tonnes of coal to domestic clients up by 9% YOY and exports rose by 28% to 11.1 million tonnes.
SUEK is Russia's largest coal company. It provides for about 30% of coal supplies in the domestic market and some 20% of Russian coal exports. SUEK produced 84.4 million tons of coal in 2005.
Minor blast at Acerinoxs Cadiz steel shop
It is reported that 6 people mostly with eye injuries were taken to hospital with minor injuries on Wednesday after an explosion at Acerinoxs stainless steel plant at the Los Barrios plant in Cadiz province in southern Spain.
The cause of the accident is reported to be molten metal coming in contact with water. Damage was minor and normal work resumed quickly. Acerinox said that it would not have much effect on production.
The Cadiz plant is the biggest of its type in the world, with output of more than one million tonnes of flat stainless steel per year.
Poland to reduce coal capacity
It is reported that Polish ministry of economy is preparing a strategy for its mining sector under which it is proposing to cut coal mining capacity and give Kompania Weglowa more time to pay back debts. Mr Pawel Poncyljusz the deputy minister of economy said that it could be ready as early as this month and there will be several ideas presented in the document for the Kompania Weglowa to get PLN 400m (Euro 103.2 million).
Mr Pawel Poncyljusz said One option is that KW sells two mines to Weglokoks. KW would get funds. The problem of export coal would be solved because today the export coal is cheaper than the Polish one. We are also discussing with the Ministry of the Treasure other possibilities for KW to raise funds, including selling it a stake of PKW coal group.
Mr Pawel Poncyljusz added There is no danger that KW loses liquidity right now but in 2008 it can have problems with its debts. We want to prolong the deadline to pay back its debts against the budget from 2010 to 2015. Mr Pawel Poncyljusz stressed that Demand for coal will fall to 80 million tons a year till the year 2015. Moreover, we can spend about 5 million tons for clean technologies of coal production and exports in 2012. The demand will not be bigger.
PKE energy owns a controlling stake in PKW, while the rest is with KW. It has not been decided yet whether the shares would be sold to an investor or listed on the stock exchange. The debts amount to PLN 3 billion. KW had PLN 6 million of net income after the first half of the year. Last year its coal sales exceeded 94 million tons.
Ms Gina Rinehart wins Dealer of the Year award
Australia's first lady of iron ore Ms Gina Rinehart has been awarded Dealer of the Year Award at this year's Diggers and Dealers mining forum.
Mr Brian Hurley chairman of forum at the closing ceremony said "In the end Hancock Prospecting reunited with a company that they have been associated with for many years and when announced, I suggest very few of us had the transaction on the radar and yet everybody understood the strategic and commercial sense that the deal made." Mr Hurley said at the closing ceremony for Diggers. He said Mr Hancock would have been very proud of his daughter who continued his legacy of mining.
Ms Rinehart's Hancock Prospecting, named after her father and mining magnate Mr Lang Hancock, signed a JV agreement with Rio Tinto to develop the Hope Downs iron ore project in Western Australia last year.
RBCT expansion approved
Mr Kuseni Dlamini chairman of South African Richards Bay Coal Terminal announced that it has been given the go ahead for the 5th phase of expansion but the scope of the project had been reduced. Mr Dlamini said This project maintains RBCT's position as the single largest export coal terminal in the world, an important consideration given that RBCT is the second largest foreign income generator for South Africa. The R1.2 billion expansion project was now expected to be complete by the end of the first half of 2009.
The scope of the project had been reduced from 92 million tons a year to 91 million tons a year in order to start the expansion to meet the short to medium term export capacity requirements. Further expansions beyond 91 million tons a year to meet long term demand would depend on the conclusion of negotiations with the National Ports Authority for the additional land required together with approval by the Department of Agriculture and Environmental Affairs, Kwazulu Natal of RBCT's environmental impact assessment application.
Wuhan & Handen to put 300 tonne twin ladle furnaces
Chinese steel producers Wuhan Iron and Steel Company and Handan Iron & Steel Company Ltd have ordered for supply of 300 tonne twin ladle furnace. Start up of the ladle furnace at WISCO is scheduled for May 2007 and at Handan is for September 2007.
Hubei based Wuhan would install the ladle furnace in their BOF Steel Shop No 3. WISCO has an annual production capacity of approximately 9 million tons.
Hebei based Handan will install the ladle furnace in their new 5.4 million tonne per year converter steel shop.
The ladles will be equipped with current conducting electrode arms and all necessary facilities to assure exact temperature and chemical composition adjustments of the steel for the subsequent continuous-casting process.
RFID tags pose challenge for steel recycling
With the growing use of radio frequency identification devices potential environmental impact is becoming a concern. Mr Joe Dugan president and CEO of RF Code recently said that there needs to be a US recycling program for the tags. Mr Dugan said Congress should provide RFID usage guidelines for the United States.
The American Iron and Steel Institute had warned in an April release that RFID tags made with copper as the antenna component would be devastating for steel recycling and the steel industry in general because of the possibility of the RFID tags mixing with steel scraps. On the other hand, it said the use of aluminum would have no discernable effect on the recycling process.
There are two types of RFID tags, passive and active. Passive tags are powered externally, while active tags must carry a source of energy that enables them to operate internally.
The steel industry is calling on the government and business entities to reject the development of copper based tags.
CSN Q2 net slip by 2.3% as BF accident reduces volumes
Sao Paulo based Brazils 3rd largest steel maker Cia. Siderurgica Nacional said that its consolidated net income of 409.5 million reais ($188.7 million) during April to June 2006 quarter fell by 2.3% YOY as compared with 419.2 million reais in April to June 2005. Net revenue slumped to 1.92 billion reais from 2.54 billion reais a year ago and 1.95 billion reais in the first quarter. EBITDA plunged to 477 million reais from 1.21 billion reais a year earlier.
CSNs output fell by 71% in the second quarter from a year ago to 393,000 tonnes. Sales volumes also suffered, dropping to 933,000 tonnes from 1.14 million tonnes in the second quarter of 2005.
CSN shut one of two main blast furnaces after an accident at Getulio Vargas Mill in Volta Redonda on January 22nd and repairs were not completed until June. The BF under repairs accounts for 60% of the CSNs hot metal at Volta Redonda, The stoppage severely reduced output of steel slabs and forced CSN to buy slabs from abroad to keep up with demand. The furnace was restarted in late June.
S&P raises Norilsk Nickels rating to BBB
Standard & Poors Ratings Services have raised its long term corporate credit rating for MMC Norilsk Nickel to BBB- from BB+, also reporting a Stable Outlook. The latest rating is the highest of all private corporations in Russia. At the same time, the 'ruAA+' national scale rating was also assigned to the Company.
The aggregate of all ratings now assigned Fitch - ??B, Moody's - ??1 and Standard & Poors - B?? gives MMC Norilsk Nickel the highest rating among privately owned Russian companies. These ratings reflect the Companys unique resource base, a strong financial profile, effective management decisions, as well as a strong position in the global markets of nickel, palladium, platinum, and copper.
MMC Norilsk Nickel is the worlds largest producer of nickel and palladium and one of the major producers of platinum, copper and cobalt.
AK Steel increases September surcharges for electrical steel
AK Steel has advised its customers that a $270 per ton surcharge will be added to invoices for electrical steel products shipped in September 2006. The September surcharge is up from a $235 per ton surcharge added to August shipments of electrical steel products.
AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the July 2006 purchase cost used to determine the September 2006 surcharges.
IPSCO narrows location search to 3 for steel facility
Steel maker IPSCO is reported to be n the look out for a locations for setting up a high end steel processing and distribution facility and has narrowed its search to San Antonio, Shreveport and Mobile in Alabama according to the Shreveport Times.
Mr Tom Filstrup director of investor relations for IPSCO said "We are looking all the time at lots of places. We haven't made any decisions yet.'' He said that IPSCO does not have any interest in building a new steel mill and it is constantly looking at sites around the country for facilities to enhance its existing product line.
IPSCO earned $585 million in 2005 on $3 billion in sales, makes infrastructure steel for buildings, bridges and railcars. It also makes steel products for the energy industry and has a coil processing plant in Houston.
Jinchuan announces SS makers concern over high nickel prices
China's largest nickel producer Jinchuan Group in an effort to help lower speculation in the nickel market made an announcement relaying customers concerns about high prices. Four leading stainless steelmakers Ningbo Baoxin, TISCO, POSCO Zhangjiagang and POSCO Qingdao cut supply by 20% together in July in reaction to the high nickel prices and the high nickel price s have forced some of their customers to turn to less expensive 200 series stainless steel.
Jinchuan said that the customers from the stainless steel, alloy, and heavy machinery industries recently told company that the current prices are unaffordable. The company was told by stainless steelmakers that high nickel prices have led to lower demand in China and nickel substitutions are taking over the market
Mr Chen Shufang an analyst with Antaike Information said that Jinchuan released customers concerns to call for other nickel makers to stop hedging too much on the international futures markets, which increases speculation.
Smorgon bags rail wheel order from SA Transwerk
Australian Smorgon Steel announced that it has won a contract to supply 26,000 rail wheels over an 18 month period to Transwerk of South Africa.
Smorgon Steel is Australia's largest manufacturer of rail wheels, and the contract to supply Transwerk is the Company's largest export order for this product line. Rail wheels are manufactured at Smorgon Steel's electric arc furnace at Waratah in the Hunter region of New South Wales.
Transwerk is a division of Transnet Ltd and provides maintenance services to South African Railways.
CSN to set up 0.5 million long product mill plant
Sao Paulo based Cia Siderurgica Nacional plans to invest $113 million to build a long steel plant in Rio de Janeiro state. The plant is slated to reach production in 20 months including 18 months of construction.
The plant will be located in Volta Redonda city and would have capacity of 500,000 tonnes per year of rebar, wire rods and profiles.
Laiwu Steel's H1 profit down by 10.9%
Chinese steel maker Laiwu Steel Corps net income fell to 287.17 million yuan ($35.88 million) down by 10.3% as compared with 320.19 million yuan in H1 of 2005. Sales rose by 10.9% to 11.3 billion yuan.
Laiwu produced 2.55 million tons of hot metal and 3.22 million tons of crude steel during January to June 2006.
Laiwu, based in eastern China's Shandong province, is in talks to merge with Jinan Iron & Steel Group to form a venture that can produce 20.7 million metric tons of steel a year, ranking it as the world's 6th biggest producer of steel.
NDRC approves construction of coal berths in Hebei
China's National Development and Reform Commission has approved construction of coal berths in north China's Hebei Province to make up the shortage of shipping capacity for 80 million tons of coal in Qinhuangdao, Tianjin, Huanghua and Tangshan ports.
With total investment of 7.607 billion yuan ($954 million), the coal berths will be built in Caofeidian, an island 80 km south of Tangshan in Beijing's neighboring province of Hebei, and in the Jingtang Port, which is about 95 kilometers southeast of Tangshan.
A source with NDRC disclosed that the total investment in the Caofeidian coal harbor is estimated at 4.624 billion yuan ($580.16 million), with a construction term of about three years.
Iranian MSC & KSC reported to be on list of privatization
ME Steel, citing top key people in Iranian Steel industry, has reported that according to the Article no 44 of Iranian parliamentary rules, steel producers Mobarakeh and Khuzestan are on the list of Iranian companies awaiting privatization under the government's plan to sell part or all shares of the factory through Tehran Stock Exchange. This article should become operational soon since it was expressed by Iranian leader Ayatollah Khamenei in his lecture recently.
Steel mills at Da Nang face closure on August 31st
Vietnamese Da Nang Peoples Committee has delivered an ultimatum to steel mills in the area to take action to reduce their pollution level by half else they will be forced to shut down b y August 31st. Those mills that commit to reduce pollution will be allowed to operate until 2008. After that time, only those that have standardized emission control systems will be allowed to continue operating.
Most of the steel mills operating in Da Nang have no waste treatment system, meaning that the untreated exhaust fumes are released directly into the atmosphere. Authorities have found that the concentration of the toxic gases exceeds the allowed levels. CO concentration was 67-100 times higher than acceptable levels, NOx 2-6 times higher, while lead steam concentration was 65,500 times higher than the allowed level.
Da Nang authorities have also decided not to license any new steel mills located outside industrial zones. The city authority will levy fines on enterprises violating the regulations on environmental protection, and cut their tax incentives.
Da Nang steel mill operators have joined forces to ask the city authority to delay the deadline for environmental treatment until 2008 or 2010. The request has been rejected.
Cleveland-Cliffs warns on magnetite projects in Australia
US based pellet producer Cleveland-Cliffs during a presentation at the Diggers & Dealers mining conference has warned West Australian magnetite miners like Cape Lambert Iron Ore, Gindalbie Metals and Midwest that they are unlikely to get their projects into production within the next five years. Mr Joseph Carrabba COO of Cleveland-Cliffs said "I will be very straightforward and blunt about it. It's going to be a very difficult thing to get these big projects on in a time that's reasonable."
Mr Carrabba said that the high costs of building magnetite processing plants when Rio Tinto and BHP Billiton had plenty of high grade haematite ore left in the Pilbara now made pellets a less attractive proposition in the Australian market.
Cleveland-Cliffs entered the Australian market last year by buying about 80% of Portman Mining., which is Australia's 3rd biggest haematite producer with 6 million tonnes annual output.
Oxiana bags the Digger of the Year award
The Digger of the Year Award at this year's Diggers and Dealers mining forum went to diversified miner and much speculated takeover target Oxiana.
Mr Brian Hurley chairman of forum at the closing ceremony said "Oxiana has focused on a multiple commodity strategy and has without doubt established itself as having a significant future as a leader in the Australian resources sector."
Oxiana had been aggressively driving its growth strategy with the recent acquisition of the Golden Grove base metals mine in WA, its continued development of the Sepon gold and copper mine in Laos and the planned development of the Prominent Hill copper and gold project in South Australia.
CSCs pretax earnings improve in July 2006 MOM
Taiwans largest integrated producer of steel China Steel Corporation has posted NT$4.656 billion ($143.26 million) in pretax earnings in July 2006 representing a 5% growth from June 2006 but down by 24.08% YOY. The July pretax earnings included recognized net investment gain of NT$840 million ($25.84 million). CSC said it registered NT$15.064 billion ($463.5 million) in sales in July up by 0.7% MOM and down by 2.23% YOY. July pretax earnings are the highest so far in this year.
CSC had cumulative pretax earnings of NT$21.311 billion ($655.72 million) in first seven months of this year, for a sharp annual decline of 55.95%. The company scored cumulative sales of NT$95.1 billion ($2.92 billion) in the first seven months of this year down by 16.88% YOY.
Ukraine to sell ports in 3 years
According to the Transportation Ministry, Ukraine expects to earn between $7 billion and $9 billion from selling port infrastructure assets within the next three years.
The ministry said that government plans to keep in state property the water area and facilities for the safety of navigation in the zone of operation of the port administration.
Petrovskiys crude steel production up by 9.6% in 7 months
Pryvat Group controlled Petrovskiy Steelworks has produced 0.75 million tonnes of crude steel during January to July 2006 up by 9.6% YOY, 0.84 million tonnes of hot metal down by 1.6% YOY and 0.67 million tonnes of rolled steel up by 7.9%YOY,
DMZP produced 0.07 million tonnes of rolled steel, 0.11 million tonnes of steel, and 0.13 million tonnes of pig iron in July 2006.
DMZP had produced 1.1 million tonnes of rolled steel and 1.25 million tonnes of crude steel in 2005.
Puda Coals net profits down by 64% YOY in April to June quarter
Puda Coal Inc has reported net income of approximately $0.391 million in April to June quarter down by 64% as compared to net income of approximately $1.1 million in Q2 of 2005. Puda said that the net income was reduced by non cash charges totaling approximately $1.9 million. Puda has reported record revenue of approximately $30.9 million for the April to June 2006 up by 264% as compared to approximately $8.7 million in Q2 of 2005.
The tonnage sales of cleaned coal increased to approximately 0.397 million tonnes in Q2 of 2006 up by 231% as against 0.120 million tonnes in Q2 of 2005.
Puda is a producer of metallurgical coking coal in China and currently possesses 2.7 million metric tons of annual coking coal cleaning capacity, and management believes it is the largest coking coal cleaning company in terms of capacity in Shanxi Province.
Ezz Steel profit climbs by 30% in Q1
Egypt's Ezz Steel Rebars reported a 30% rise in first quarter net profit to 180 million Egyptian pounds ($31 million). The figure was 138 million pounds a year earlier.
